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IndiaTech Seeks Changes to Gig Worker Social Security Levy
IndiaTech represents several companies that use gig and platform workers.
It says the rules for paying into workers’ social security should be reconsidered.
The current rule calculates contributions using a company’s annual turnover, with a limit tied to payments made to workers.
Some companies count the whole customer payment as turnover, while others count only their commission.
IndiaTech says this can make companies pay different amounts even when workers do similar jobs.
It suggests calculating contributions based on the money paid or owed to workers, or on each transaction.
The group also says the law should cover newer kinds of platforms.
The labour ministry had not responded to Mint by publication time.
IndiaTech has asked the Union labour ministry to reconsider how gig-worker social security contributions are calculated.
The group proposes basing contributions on the amount paid or payable to workers, rather than accounting turnover.
Under the Social Security Code, aggregators must contribute 1–2% of annual turnover, capped at 5% of payments to workers.
IndiaTech says principal-model platforms recording full transaction values may face higher levies than agent platforms recording only commissions.
Its white paper also urges the Code to recognise newer gig-economy models, including platforms, principal service providers and subscription services.
- Who
- IndiaTech, which represents startups including Ola, Swiggy, Zomato and Porter, made the proposal.
- What
- It urged the Union labour ministry to review how gig-worker social security contributions are calculated and to update the Code’s coverage of business models.
- Where
- India.
- When
- The white paper was submitted on 29 September; the Code was implemented on 21 November 2025.
- Why
- IndiaTech says turnover is measured differently across business models, which can produce unequal contribution liabilities for comparable gig-worker activity.
IndiaTech and cited legal experts
Current Code framework
How contributions should be calculated
IndiaTech and cited legal experts
IndiaTech argues contributions should reflect payments to workers or individual transactions, rather than accounting turnover, because turnover differs across business models.
Current Code framework
The Code sets contributions as 1–2% of annual turnover, subject to a cap of 5% of the amount paid or payable to workers.
Whether the existing cap resolves disparities
IndiaTech and cited legal experts
The white paper and cited legal experts say the 5% cap is only a ceiling and does not equalise liabilities; some platforms may reach it sooner than others.
Current Code framework
The Code includes the 5% cap as a limit on contributions; the article reports no response from the ministry explaining its position.
Coverage of newer business models
IndiaTech and cited legal experts
IndiaTech says the Code should be amended to include newer models such as platforms, principal service providers and subscription services.
Current Code framework
The article says the 2020 Code recognised a broad aggregator model; it does not report an official response on whether the definitions should change.
Key facts
- Current contribution rate
- Aggregators contribute 1–2% of annual turnover.
- Contribution cap
- The contribution is capped at 5% of the amount paid or payable to gig and platform workers.
- IndiaTech proposal
- Base contributions on payments to workers or individual transactions, alongside sectoral upper caps.
- Example in the white paper
- On a ₹100 customer payment, an agent platform may record ₹20 commission as revenue, while a principal platform may record the full ₹100.
- Projected gig workforce
- NITI Aayog estimates the workforce exceeded 1 crore in 2024–25 and may reach 2.35 crore by 2029–30.
- White paper date
- Submitted to the labour ministry on 29 September.
- Labour ministry response
- The ministry had not responded to Mint’s queries by press time.
Quotes
Dhiraj Gyani
Chief Operating Officer of IndiaTech
“Linking contributions from aggregators to accounting turnover rather than actual labor utilization creates profound structural inequities. Because the definition of turnover varies between business models, this approach forces sectors to contribute in near-inverse proportion to the workforce they engage, resulting in wildly unequal premiums for comparable work.”
livemint.com
“The cap is a ceiling, not an equaliser. This especially puts logistics and delivery platforms at a disadvantage. In both these industries, the contribution will quickly hit the cap. Below the ceiling, two comparable platforms can still pay materially different amounts. This creates disparity.”
livemint.com
Sources
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